I don’t know about a pool of buyers waiting on the sidelines, but one thing to keep in mind is that most homebuyers in San Diego already own another home, that they’re probably selling concurrently. I don’t have any idea what the exact percentages are, but I’m sure that first-time homebuyers, current renters, and people relocating from outside of San Diego make up a minority of the total number of buyers.
To me, it’s easier to buy a home when market conditions are flat or worse. You won’t get the price you want for the house you’re selling, but there are more listings to choose from, and you can probably get a good deal on your purchase. If you want to downsize, upsize, or whatever, the price on your house is probably going decline some in the next several years whether you stay in your current house or purchase another one.
